DOL FY2000 Budget
EMPLOYMENT AND TRAINING ADMINISTRATION
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Employment and Training: | |||
| Training and Employment Services 1/ | $5,323.2 | $5,549.7 | $226.5 |
| Community Service Employment for Older Americans | 440.2 | 440.2 | 0.0 |
| Employment Service/One Stop | 968.1 | 1,047.3 | 79.2 |
| Gifts and Bequests | 0.3 | 0.3 | 0.0 |
| Welfare-To-Work Jobs 2/ | 1,488.0 | 1,000.0 | -488.0 |
| Subtotal, Employment & Training | 8,219.8 | 8,037.5 | -182.3 |
| Income Maintenance: | |||
| Unemployment Insurance Program 3/ | 2,360.4 | 2,459.5 | 99.1 |
| Federal Unemployment Benefits (FUBA) 2/ | 360.7 | 471.4 | 110.7 |
| Advances to UTF and Other Funds 2/ 4/ | 357.0 | 356.0 | -1.0 |
| Payments to the UTF 2/ | 0.0 | 0.0 | 0.0 |
| Unemployment Trust Fund Residual 2/ | 22,889.6 | 25,683.0 | 2,793.4 |
| Less Interfund Transactions | -473.0 | -504.0 | -31.0 |
| Subtotal, Income Maintenance | 25,137.7 | 28,109.9 | 2,972.2 |
Program Administration 5/ | 139.7 | 141.0 | 1.3 |
Total ETA Budget Authority | $33,497.2 | $36,288.4 | $2,791.2 |
Full Time Equivalents (includes reimbursable staff) | 1,388 5/ | 1,344 | -44 |
1/ Includes H1-B fees ($42.3 in FY 1999 and 49.9 in FY 2000) for usein demonstration projects.
2/ Mandatory funding, includes legislative proposal.
3/ FY 1999 includes $40.0 million appropriated in FY 1998 as an advanceappropriation for FY 1999, for Y2K conversion and includes a negativesupplemental (a reduction of -$5.7 million).
4/ Non-add item, see Black Lung Disability Trust Fund (BLDTF)
5/ Includes Alien Labor Certification (ALC) activities in FY 1999. Theseactivities are transferred to the Employment Standards Administration, WageHour Division in FY 2000, and reflected therein. Amounts included in FY 1999for ALC are 98 FTE and $7.7 million.
The total FY 2000 budget request for the Employment and TrainingAdministration is designed to provide a prepared workforce to help Americansget the education and training and employment services that will enable them toobtain good jobs at decent wages, and to provide temporary support for thosehaving difficulty in achieving this.
In total, funds for the Employment and Training Administration (ETA) in FY2000 will increase by a net of $2.8 billion compared with FY 1999. In IncomeMaintenance, there is an increase of approximately $3 billion due primarily toan increase in State outlays from the Unemployment Trust Fund account. Thisincrease is due to a larger number of claims and of insured unemployed, as wellas an increase in the average weekly benefit amount paid. In the Employment andTraining Programs area, there is a decrease of $182.3 million, largely due tothe reduced level of the proposed reauthorization of the Welfare-to-WorkProgram.
EMPLOYMENT AND TRAINING PROGRAMS(Dollars in Millions) | |||
| Employment and Training | Income Maintenance | Program Administration | |
| Training and Employment Services 1/ | $5,549.7 | ||
| Adult Employment and Training Activities | 955.0 | ||
| Dislocated Worker Employment and Training Activities | 1,595.5 | ||
| Youth Activities | 1,001.0 | ||
| Youth Opportunity Grants | 250.0 | ||
| Job Corps | 1,347.2 | ||
| School-To-Work | 55.0 | ||
| Right Track Partnerships | 100.0 | ||
| National Programs | 246.0 | ||
| Community Service Employment/Older Americans | 440.2 | ||
| State Unemployment Insurance & Employment Service | 1,047.3 | 2,459.5 | |
| Unemployment Insurance | 2,459.5 | ||
| Employment Service | 765.3 | ||
| Reemployment Services Grants | 53.0 | ||
| AgNet | 10.0 | ||
| One Stop Career Centers | 149.0 | ||
| Work Incentives Grants | 50.0 | ||
| Work Opportunity Tax Credit | 20.0 | ||
| Federal Unemployment Benefits & Allowances 3/ | 471.4 | ||
| Advances to the UTF and Other Funds 2/ | 356.0 | ||
| Payments to the UTF | 0.0 | ||
| Unemployment Trust Fund Residual | 25,683.0 | ||
| Program Administration | 141.0 | ||
| Gifts and Bequests | 0.3 | ||
| Welfare-To-Work Jobs | 1,000.0 | ||
| Interfund Transactions | -504.0 | ||
| $8,037.5 | $28,109.9 | $141.0 | |
1/ Includes $49.9 million in H1-B fees for use in demonstrationprojects.
2/ Non-add item, see Black Lung Disability Trust Fund (BLDTF).
3/ FY 2000 includes proposed legislation ($157 million)
EMPLOYMENT AND TRAINING PROGRAMS
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Youth | $2,685.2 | $2,753.2 | $68.0 |
| Youth Grants | 1,251.0 | 1,251.0 | 0.0 |
| Youth Activities 1/ | 1,001.0 | 1,001.0 | 0.0 |
| Youth Opportunity Grants | 250.0 | 250.0 | 0.0 |
| Job Corps | 1,309.2 | 1,347.2 | 38.0 |
| Right Track Partnerships | 100.0 | 100.0 | |
| School-To-Work | 125.0 | 55.0 | -70.0 |
| Universal Reemployment 5/ | 1,486.3 | 1,837.5 | 351.2 |
| Dislocated Worker Employment and Training Activities | 1,405.5 | 1,595.5 | 190.0 |
| Basic Program | 1,405.5 | 1,555.5 | 150.0 |
| Skill Shortage Grants 4/ | 40.0 | 40.0 | |
| Reemployment Services Grants | 53.0 | 53.0 | |
| One Stop/ALMIS | 80.8 | 129.0 | 48.2 |
| Work Incentives Grants | 50.0 | 50.0 | |
| AgNet | 10.0 | 10.0 | |
| Other Employment and Training | 4,048.3 | 3,446.8 | -601.5 |
| Adult Employment and Training Activities | 955.0 | 955.0 | 0.0 |
| Employment Service 2/ | 801.6 | 765.3 | -36.3 |
| One Stop/Implementation Grants | 65.7 | 20.0 | -45.7 |
| Work Opportunities Tax Credit 4/ | 20.0 | 20.0 | 0.0 |
| Welfare-To-Work Jobs (Prop. Leg.) 3/ | 1,488.0 | 1,000.0 | -488.0 |
| WIA National Programs | 277.5 | 246.0 | -31.5 |
| Community Serv. Employ/Older Americans. | 440.2 | 440.2 | 0.0 |
| Gifts and Bequests | 0.3 | 0.3 | 0.0 |
Total Budget Authority | $8,219.8 | $8,037.5 | $-182.3 |
1/ Amounts in FY 1999 include both Summer and year round programs.
2/ Includes Alien Labor Certification activities ($36.3 million) in FY1999. These activities are transferred to the Employment StandardsAdministration, Wage Hour Division in FY 2000 and reflected therein.
3/ Mandatory funding.
4/ Requested budget authority for Skill Shortage Grants and WOTC will bereplaced with funding generated by fees on employers requesting alien laborcertification under the Administration's legislative proposal.
5/ This increase will be supplemented by $17 million from existingresources to enhance the Universal Reemployment initiative.
The Fiscal Year (FY) 2000 budget request for Employment and TrainingPrograms proposes a net decrease of $182.3 million to $8.037 billion. This netchange includes increases of $68 million for Youth and $368 million forUniversal Reemployment, including $17 million from existing resources, and adecrease of $601.5 million for Other Employment and Training Programs, largelydue to a proposed reauthorization of the Welfare-to-Work Program, but at areduced level.
Workforce Investment Act
The Workforce Investment Act (WIA), enacted in 1998, replaces the JobTraining Partnership Act (JTPA) as the primary training authorization for theDepartment. The new act revitalizes the Nation's job training system to provideworkers with the information, advice, job search assistance, core and intensiveservices, and training they need to obtain and keep good jobs, and provideemployers with skilled workers. FY 1999 will be a year of transition to the newact, as most grantees continue to operate under JTPA during that year, with WIAbeing fully operational on July 1, 2000.
Youth
A total of $2.8 billion is requested in this area for investments inprograms that help young people make a successful transition to the world ofwork and family responsibility -- a net increase of $68 million above FY 1999.In FY 2000, the Department will administer five programs to address youthproblems: WIA Youth Activities, Youth Opportunity Grants, Job Corps, and a newRight Track Partnership Grant Program, all under authority of the WorkforceInvestment Act (WIA), and School-to-Work, under authority of the School-to-WorkOpportunities Act.
For Youth Grants, with funding authorized by Section 126 of WIA, a total of$1.251 billion is requested, the same amount provided in 1999. This levelincludes $1.001 billion for WIA Youth Activities and $250 million for YouthOpportunity Grants.
WIA replaces the former Job Training Partnership Act Youth Training Grantsand Summer Youth Employment and Training Programs with a single YouthActivities funding stream to support a wide range of activities and services toprepare disadvantaged youth for academic and employment success, includingsummer jobs. In FY 2000, a level of $1.001 billion is requested to provideservices to an estimated 577,700 participants. This is the same level offunding provided in 1999 for the combined Youth Training Grants and SummerYouth Employment and Training Programs. However, there will be a decrease inthe number of youth participants as more youth receive more intensive, morecostly services.
The FY 2000 budget includes $250 million for newly-authorized YouthOpportunity Grants. The program will provide grants to high poverty urban andrural communities. These competitive matching grants will be distributed tocurrent and future Empowerment Zones (EZ) and Enterprise Communities (EC) andsimilar high poverty areas, and will train youth for jobs. This program isintended to provide early intervention in the lives of young people who arepotential long term recipients of public assistance. This request includes $20million for a new Rewarding Youth Achievement Program. This effort will provideeconomically disadvantaged youth in high poverty areas with extended summeremployment opportunities and the opportunity to earn an end of the summer bonusas a reward for academic achievement. It is expected that 12 - 18 sites will befunded in the initial year. Also included is $10 million for Migrant Youthactivities, the same level as 1999, to provide employment and trainingassistance to youth in families engaged in migrant and seasonal farm work.
The Job Corps will provide intensive skill training, academic and socialeducation, and support to an estimated 70,500 participants at 121 centers in FY2000. The budget request is $1.347 billion, a net increase of $38 million aboveFY 1999. The increase includes $28.1 million for increased costs, $11.7 millionfor the operations costs of 3 new centers, $12.6 million for post terminationtracking and services, and $6.6 million for teacher and other staff salaryincreases. Decreases in the program include $1.6 million for one time Y2K costsprovided in FY 1999 and $19.5 million reflecting decreased new centerconstruction needs. Regarding the latter, the FY 2000 budget includes $13.5million to complete 4 new centers for which construction was initiated with1998 and 1999 funding.
Also included in the FY 2000 budget, is a new Right Track Partnerships GrantProgram, requested at a level of $100 million. Under the WIA National Programsauthority, funds will be used to prevent youth from dropping out of school andencourage those who have already dropped out to complete their high schooleducation. Strong partnerships will be formed between the private sector, theschools, and community based organizations to tailor services to real needs. Itis expected that the funding requested would serve up to 100,000 students withgrants to 20 to 30 communities.
The School-to-Work program, administered jointly with the Department ofEducation, links education and employment through competitive grants to Statesand communities. The funds assist youth to acquire the knowledge, skills, andlabor market information they need to make a smooth transition from school tocareer-oriented work or further education and training. The budget includes $55million for each agency, a planned decrease of $70 million below FY 1999. Thisreflects the final year of the program's Federal funding as the States take onthe responsibility of building integrated learning and employment opportunitiesthroughout the country for all youth, but particularly for the non-collegebound.
Universal Reemployment
As part of the FY 2000 budget, President Clinton proposes to put us on apath that ensures that (1) every displaced worker would receive training andreemployment services if they wanted and needed it; (2) every unemployedclaimant who lost their job due to no fault of their own would get thereemployment services they wanted and needed; and (3) every American would haveaccess to One-Stop Career Centers. This initiative is supported by theDepartment's Dislocated Worker Employment and Training Activities Program andOne Stop Career Centers, together with new programs of Reemployment ServicesGrants, Work Incentives Grants, and America's Agricultural Labor Network.
Dislocated Worker Employment and Training Activities under authority of WIA,provides State formula grants, as well as a national emergency grant account,for retraining and adjustment services to laid off workers with a labor marketattachment to help those return to work and to produce marketable skillsleading to productive, unsubsidized employment. The FY 2000 request includes$1.596 billion for this program, an increase of $190 million above 1999 tosupport 858,500 participants. This increase is part of a build up which wouldassist all dislocated workers in need of these services by 2004.
Also funded with dislocated workers are competitive grants to consortia oflocal workforce boards and regional skill alliances to identify skill shortagesand target resources on industries struggling to fill jobs, identify dislocatedworkers needing retraining, and provide training and job placement services. Atotal of $40 million in dislocated worker discretionary funding is requestedfor these purposes. Legislation will be proposed to finance skill shortagegrants with fees paid by employers applying for certification by DOL of certainaliens eligible to work in the U.S. Upon enactment, the budget authority beingrequested will be reduced and fees will finance the program.
The Department's One Stop Career Center initiative was designed to transforma fragmented array of employment and training programs into an integratedservice delivery system for job-seekers and employers. Within One Stop, the FY2000 request for America's Labor Market Information System (ALMIS) is increasedby $48.2 million to $129.0 million as part of the President's initiativeintended to ensure that all Americans have access to One Stop Career Centers by2004. An additional $17 million from existing resources will supplement theALMIS increase for Universal Reemployment enhancements. The initiative includesthe full implementation of a toll-free number that every person can call to getinformation on services, benefits, and training offered through the workforcesystem. Other initiatives include the continued enhancement of America's Joband Talent Banks, America's Learning Exchange, mobile one stops, andneighborhood one stop access and outreach.
In FY 2000, the budget includes $50 million for a new Work Incentives Grantsprogram. This will provide competitive grants to partnerships or consortia ineach State to improve access, accommodation, benefits, services, and employmentopportunities, through One-Stop Centers, to individuals with disabilities toallow them to return to work. This is a part of the President's comprehensivepackage of work incentives for people with disabilities.
Also in FY 2000, a new program of Reemployment Services Grants will befunded at $53 million. These Employment Service grants will provide funds forincreased reemployment services targeted on unemployment insurance claimants toensure that all unemployed workers who need help to become reemployed will getthe services they need.
FY 2000 also includes an increase of $10 million in the Employment Servicefor development of the new America's Agricultural Labor Network (AgNet), a newinformation system that allows growers to find workers and workers to findemployment opportunities that meet their needs.
Other Employment and Training
The FY 2000 budget includes $3.447 billion for Other Employment and TrainingPrograms, a net decrease of $601.5 million below 1999 largely because of theproposed decrease in Welfare-to-Work. This program grouping includes AdultEmployment and Training Activities, the Employment Service, One StopImplementation Grants, the Work Opportunities Tax Credit, Welfare-to-Work, WIANational Programs, Community Service Employment for Older Americans, and Giftsand Bequests.
Adult Employment and Training Activities provide formula grants to Statesunder authority of WIA for employment and training assistance to low-incomeadults. The FY 2000 request includes $955 million for this program, the same asin 1999, to support an estimated 393,300 disadvantaged and low incomeparticipants, including welfare recipients.
The WIA adult program no longer has an eligibility requirement, and alladults can receive core services, with more intensive services and trainingbeing targeted to those most in need, including welfare recipients. This changeis expected to result in more participants being served, with the cost perparticipant going down from the previous JTPA program.
The Employment Service labor exchange is the indispensable job findinginfrastructure for the One-Stop services delivery system. It provides no-feeservices to individuals seeking employment and to employers seeking workers.The Employment Service request is expected to result in the placement of 2.3million individuals in jobs. As the systems-building portion of the One Stopnears completion, decreasing by $45.7 million in FY 2000, Employment Serviceresources provide ongoing support for this initiative. The FY 2000 budgetrequest of $765.3 million, is a decrease of $36.3 million below 1999,reflecting a transfer of Alien Labor Certification activities to the EmploymentStandards Administration Wage and Hour Division in FY 2000.
This Department's request also includes $20 million, the same level providedin 1999 to finance the State administrative costs for the Work OpportunitiesTax Credit program. This proposal includes costs for administering both anextension of the existing Work Opportunities Tax Credit program and for theWelfare-to-Work Tax Credit for employers that employ long-term welfarerecipients. The budget proposes legislation authorizing employer fees tofinance the administration of the WOTC program. Upon enactment, the budgetauthority being requested will be reduced and fees will finance the program.
The Welfare-to-Work Jobs initiative, authorized by the Balanced Budget Actof 1997, is designed to help States and cities move the hardest to employwelfare recipients into lasting, unsubsidizedjobs. States and cities can use these funds to provide subsidies and otherincentives to private business. The Act appropriated $1.5 billion in mandatoryfunding for job placement and job creation in each of the fiscal years 1998 and1999, and a one year extension through 2000 at a funding level of $1 billionwill be proposed by the Administration as part of the President's Budget. NoCongressional appropriation action will be necessary to provide these funds.The program provides formula grants to the States, and Federally administeredcompetitive grants to Private Industry Councils, political subdivisions ofStates, and private entities.
WIA National Programs is funded at $246 million in FY 2000, a net decreaseof $31.5 million below 1999. These programs include the provision of employmentand training assistance to native Americans, migrant and seasonal farm workers,and veterans, as well as pilots, demonstrations, and research, and evaluation,in support of the employment and training system. A new demonstration programof grants to regional and local entities to provide technical skills trainingfor unemployed and incumbent workers will be initiated in 1999 and supported byfees paid by employers applying for foreign workers under the H-1B temporaryalien labor certification program. This program is authorized by the AmericanCompetitiveness and Workforce Improvement Act of 1998.
Increases in FY 2000 include $7.6 million for the new H-1B fee-supporteddemonstration program, $5.6 million to evaluate new Workforce Investment Actprograms, $5 million for Technical Assistance to WIA grantees, and $2 millionin the Homeless Veterans Reemployment Program. Decreases include $30.5 millionfor one time Pilot and Demonstration projects funded in 1999 but not in 2000,$9 million for the National Occupational Information Coordinating Committeeformerly authorized by JTPA, but not by WIA, $7 million for Migrants andSeasonal Farm workers reflecting the one time 1999 supplemental, and $4 millionfor Native Americans for a one time construction project in 1999.
In FY 2000 $440.2 million is requested for the Community Service Employmentfor Older Americans program, the same level provided in 1999. The request willcontinue support of the FY 1998 participant level of 92,000.
(Participants in Thousands) | |||
| FY 1999 | FY 2000 | Change | |
| Youth Activities | 675 | 578 | -97 |
| Youth Opportunity Grants | 51 | 58 | 7 |
| Job Corps | 70 | 70 | 0 |
| Right Track Partnerships | 0 | 100 | 100 |
| Adult Employ. and Training Acts. | 334 | 393 | 59 |
| Dislocated Workers Employment and Training Activities | 689 | 859 | 170 |
| Native Americans | 20 | 20 | 0 |
| Migrants and Seasonal Farmworkers | 38 | 38 | 0 |
| Welfare-to-Work | 304 | 200 | -104 |
| Community Services Employment/Older Americans | 92 | 92 | 0 |
| Total | 2,273 | 2,408 | 135 |
INCOME MAINTENANCE
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Unemployment Insurance Program 1/ | $2,360.4 | $2,459.5 | $99.1 |
| Fed. Unemployment Benefits & Allow (FUBA) 2/ | 360.7 | 471.4 | 110.7 |
| Advances to UTF and Other Funds 3/ | 357.0 | 356.0 | -1.0 |
| Unemployment Trust Fund Residual | 22,889.6 | 25,683.0 | 2,793.4 |
| Less Interfund Transactions | -473.0 | -504.0 | -31.0 |
| Total, Income Maintenance | $25,137.7 | $28,109.9 | $2,972.2 |
1/ FY 1999 includes $40.0 million appropriated in FY 1998 as anadvance appropriation for FY 1999, for Y2K conversion, as well as a proposednegative supplemental in the amount of $5.7 million.
2/ FY 2000 includes proposed legislation ($157 million)
3/ Non-add, see Black Lung Disability Trust Fund (BLDTF) section.
The FY 2000 request for Income Maintenance includes $28.1 billion for theUnemployment Trust Fund. Of the total FY 2000, $2.4 billion is thediscretionary amount requested for State administration of the UnemploymentInsurance Program. In addition, for the Federal Unemployment Benefits andAllowances (FUBA) account, $157.0 million is being requested to fund proposedlegislation that would consolidate and reform the Trade Adjustment Assistance(TAA) and the NAFTA-Transitional Adjustment Assistance (NAFTA-TAA) programs andextend the combined program for two and one-quarter years through September 30,2001.
The FY 2000 request for Advances to the UTF and Other Funds (Advances)account is $356.0 million for repayable loans to the Black Lung DisabilityTrust Fund. The Advances account for FY 1999 will provide loans or advances tothe Black Lung Disability Trust Fund and the FUBA account as necessary.
The balance of the Income Maintenance portion of the Trust Fund includessuch items as Federal administration, State unemployment benefits, and Federalagency reimbursements for benefits paid to former Federal employees andex-service members.
Unemployment Insurance Program
Under the State Unemployment Insurance and Employment Service Operations(SUIESO) account, funds are provided to the states for the administration ofthe unemployment insurance and employment service programs. The employmentservice program is discussed in the Employment and Training Programs section ofthis presentation.
The FY 2000 funding level requested for the Unemployment Insurance programis $2.4 billion, which will provide for approximately 45,000 staff years ofservice. State staff will handle 6.6 million employer tax accounts, 20.2million initial unemployment claims, a total of 137.2 million weeks claimed and1.1 million appeals. In addition, funds necessary for any workload increaseover current estimates are available through contingency funding.
For the unemployment insurance program, an increase of $71 million is beingrequested in FY 2000 for enhanced integrity activities. These funds are vitalto the program in terms of benefit payment accuracy, detection and recovery ofoverpayments, and collection of delinquent taxes. In addition $40 million, fora Wage Record Initiative, is requested to provide for the one time cost ofimproving the quality of the UI wage records which are reported to the NationalDirectory of New Hires. States' computer systems must be converted to collectand store workers' full names so that social security numbers can be verifiedby the Social Security Administration. Also, an additional $7 million isrequested for unemployment research. These funds will be used for researchprojects to improve system operations, develop strategies for improvingperformance and provide information to decision makers, such as the Congress,the Administration and the States.
Federal Unemployment Benefits and Allowances (FUBA)
This appropriation covers payments of unemployment benefits and allowancesand training costs of workers affected by foreign trade imports under the TradeAdjustment Assistance Act (TAA). Additionally, the TAA provides for the paymentof unemployment benefits, training, job search, and relocation costs to workersadversely impacted by the NAFTA.
For FY 2000, $314.4 million is requested for FUBA, under existinglegislation, and in addition, under proposed legislation, the amount of $157.0million is requested to consolidate, reform and extend programs funded underFUBA. This proposed legislation would extend eligibility for TAA to those wholose their jobs due to shifts in production abroad, similar to the currentprovision under NAFTA-TAA for shifts in production to Canada and Mexico. Thelegislative cap on TAA training expenditures would be raised to support theexpected increase in program participants. The consolidated program wouldharmonize existing requirements linking training and income support and wouldprovide supportive services as needed. Finally, the proposed legislation wouldcreate a contingency funding provision to assure that resources are availableto pay for any unexpected increase in benefits costs for eligible workers.
Advances to the Unemployment Trust Fund and Other Funds
This appropriation provides general fund advances to several trust andgeneral fund accounts. In FY 2000, the requested $356 million will provideadvances to the Black Lung Disability Trust Fund account, which are repayablewith interest to the General Fund in Treasury.
Unemployment Trust Fund
The Unemployment Trust Fund includes amounts for both the administration ofFederal and State unemployment compensation, and for Federal and Stateunemployment compensation benefits which provide income support to thosetemporarily out of work while they search for employment. This budget proposalis based on estimates that the insured unemployment rate for FY 2000 will be2.1 percent. This translates to an average of approximately 2.4 millionbeneficiaries per week receiving unemployment assistance under Federal andState programs in FY 2000. Average weekly benefits are estimated at $210 in FY2000, while the average number of weeks of benefits per recipient is expectedto be 14.7 weeks. The total amount paid for unemployment compensation benefitsand allowances is estimated at $25.7 billion. In FY 2000, estimated total trustfund outlays will increase from $26.4 billion to $29.2 billion primarily due toan increased number of the insured unemployed and an increased average weeklybenefit amount. Trust fund revenues earmarked for State benefits, together withState fund reserves are estimated to be sufficient to cover needed benefitpayments for States. In addition, there will be a distribution of Federal taxfunds to the States (Reed Act distribution), which are not required to maintainmandated Unemployment Trust Fund reserves.
| FY 1999 | FY 2000 | Change | |
| Basic Workload (in thousands) | |||
| Initial Claims | 18,926 | 20,191 | 1,265 |
| Weeks Claimed | 127,957 | 137,189 | 9,232 |
| Appeals | 1,083 | 1,064 | -19 |
| Wage Records | 525,030 | 529,674 | 4,644 |
| Employer Tax Accounts | 6,495 | 6,552 | 57 |
| Covered Employment | 122,100 | 123,180 | 1,080 |
| Eligibility Interviews | 9,901 | 10,615 | 714 |
ETA PROGRAM ADMINISTRATION
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Adult Employment and Training | $30.9 | $33.0 | $2.1 |
| Youth Employment and Training | 32.2 | 34.9 | 2.7 |
| Employment Security 1/ | 45.3 | 39.0 | -6.3 |
| Apprenticeship Services | 17.5 | 19.6 | 2.1 |
| Executive Direction | 7.5 | 7.9 | 0.4 |
| Welfare-to-Work | 6.3 | 6.6 | 0.3 |
| Total, Budget Authority 2/ | $139.7 | $141.0 | $1.3 |
| Full Time Equivalent Staff | 1,388 1/ | 1,344 | -44 |
1/ Includes funding for Alien Labor Certification (ALC) activities inFY 1999, and reflects the transfer of these activities to the EmploymentStandards Administration, Wage Hour Division in FY 2000. Amounts included in FY1999 for ALC are 98 FTE and $7,694,000.
2/ Includes a transfer from the Y2K Contingent Emergency Fund in FY 1999($1,572,000)
The Program Administration account provides for Federal administration ofall employment and training programs. These programs include those authorizedby the following legislation: Workforce Investment Act (WIA) of 1998, the OlderAmericans Act of 1965, as amended, the School to Work Opportunities Act, theTrade Act of 1974, as amended, the National Apprenticeship Act of 1937, theSocial Security Act of 1935, as amended, the Wagner-Peyser Act of 1933, asamended and Title 4 of Social Security Act, as amended (Welfare to Work).
Staff funded in this account will provide staff support for increasedoversight and center expansion of the Job Corps, increased grant activity fordislocated worker programs, support for the Child Care Apprenticeshipinitiative, the Apprenticeship Highway Construction and ApprenticeshipDiversity Initiatives, unemployment insurance integrity activities, EmploymentService oversight, Youth Opportunity Grants, WIA transition and Job TrainingPartnership Act (JTPA) closeout activities, WIA technical assistance andtraining, and program evaluations.
Adult Employment and Training
Funding provides staff for leadership, policy direction, and administrationfor a decentralized system of grants to States and localities for job trainingand employment assistance for disadvantaged and low income adults anddislocated workers; provides for training and employment services to specialtargeted groups; provides for the settlement of trade adjustment assistancepetitions; and includes related program administration activities. The FY 2000request for this activity includes an increase of $595 thousand and 7 FTE forWIA transition and JTPA closeout activities, $425 thousand and 5 FTE fordislocated worker initiatives, and $170 thousand and 2 FTE for WIA technicalassistance.
Youth Employment and Training
Funding provides staff for leadership, policy direction, and administrationfor a decentralized system of grants to States for job training and employmentassistance for youth programs, and Job Corps; provides for leadership andpolicy direction for the School-to-Work Opportunities system; and includesrelated program administration activities. The FY 2000 request for thisactivity includes increases of $935 thousand and 11 FTE for the Job Corpsprogram for increased oversight and center expansion, $425 thousand and 5 FTEfor the Youth Opportunity Grants program, and $225 thousand and 3 FTE for WIAtransition and JTPA closeout.
Employment Security
Funding provides staff for leadership and policy direction for theadministration of the comprehensive nationwide public employment servicesystem; unemployment insurance programs in each State; and for a One-StopCareer Center network, including a comprehensive system of collecting,analyzing, and disseminating labor market information; and includes relatedprograms operations support activities. The FY 2000 request for this activityincludes increases of $170 thousand and 2 FTE to provide additional staff forUnemployment Insurance integrity activities, and $170 thousand and 2 FTE foroversight of Employment Service programs, including the Universal ReemploymentInitiative.
Apprenticeship Services
Funding promotes and provides leadership and policy direction for theadministration of apprenticeship as a method of skill acquisition through aFederal-State apprenticeship structure. The FY 2000 request includes anincrease of $850 thousand and 10 FTE for the Child Care Apprenticeshipinitiative for increased training of child care providers; $340 thousand and 4FTE related to a Highway Construction Apprenticeship initiative, as well as$170 thousand and 2 FTE for an Apprenticeship Diversity initiative. Both ofthese initiatives are designed to increase opportunities for women inapprenticeship.
Executive Direction
Funding provides staff for leadership and policy direction for all trainingand employment service programs and activities and provides for related programoperations support, including research, evaluations, demonstrations, andperformance standards. The FY 2000 request includes an increase of $85 thousandand 1 FTE for program evaluations under the WIA.
Welfare-to-Work
Funding provides leadership, policy direction, technical assistance, andadministration for formula grants to States and competitive grants to localentities to assist long term, hard to employ welfare recipients secure lastingunsubsidized employment.
Other
The request for this account also reflects $5.1 million in built-in costincreases offset by built-in cost decreases of $1.6 million, and a programincrease of $1 million for Information Technology needs.
Reorganization
The Workforce Investment Act of 1998 requires the Department of Labor toreorganize the functions of the Employment and Training Administration, and tosubmit a report on the reorganization to the Congress. This reorganization willresult in the realignment of functions and offices within ETA.
Alien Labor Certification
The FY 2000 budget reflects the transfer of the Alien Labor Certificationprograms from ETA to the Employment Standards Administration, Wage and HourDivision. This transfer is a part of the consolidation, restructuring and majorreform of immigration functions, designed to streamline, and create a fee-basedcustomer responsive alien labor certification program characterized by thetimely processing of employer applications. In addition, the new program willenhance the Department's ability to effectively protect foreign and similarlyemployed U.S. workers.
U.S. Department ofLabor
EMPLOYMENT STANDARDSADMINISTRATION
OVERVIEW
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Salaries and Expenses 1/ | 348.7 | 410.5 | 61.8 |
| Special Benefits, Fair Share 2/ | 20.3 | 21.9 | 1.6 |
| Staffing | $369.0 | $432.4 | $63.4 |
| Income Maintenance (Mandatory) | |||
| Special Benefits | 179.0 | 79.0 | -100.0 |
| Black Lung Disability Trust Fund | 1,021.0 | 1,014.0 | -7.0 |
| Transfer From BLDTF | -50.9 | -50.1 | 0.8 |
| Offsetting Receipts - BLDTF | -2.0 | -2.0 | 0.0 |
| Panama Canal Commission Fund | 11.0 | 7.2 | -3.8 |
| Offsetting Receipts - PCC | -11.0 | -7.2 | 3.8 |
| Special Workers' Compensation | 154.0 | 161.8 | 7.8 |
| Transfer From SWC | -1.9 | -1.7 | 0.2 |
| Total, Income Maintenance | 1,299.2 | 1,201.0 | -98.2 |
| Total, ESA Program 3/ | $1,668.2 | $1,633.4 | $-34.8 |
| Full Time Equivalents | 4,038 | 4,190 | 152 |
In total, funds for the Employment Standards Administration (ESA) in FY 2000will decrease by $34.8 million compared with FY 1999. Staffing costs willincrease by $63.4 million. Income Maintenance programs will decrease by $98.2million.
1/ Includes H-1B fees and funds for the Alien Labor Certificationprogram.
2/ Estimates include 140 FTE financed in FY 2000 in the Special Benefitsaccount, using "fair share" funds.
3/ Excludes certain BLDTF Administrative expenses (see DepartmentalManagement and Office of Inspector General sections in this package).
ESA STAFFING
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Special Benefits, Fair Share | $20.3 | $21.9 | $1.6 |
| Enforcement of Wage and Hour Standards* | $134.1 | $181.4 | $47.3 |
| Fed. Contractor EEO Standards Enforcement | 65.5 | 76.4 | 10.9 |
| Federal Programs for Workers' Compensation | 108.6 | 110.5 | 1.9 |
| Program Direction and Support | 12.4 | 12.9 | 0.5 |
| Labor-Management Standards | 28.1 | 29.3 | 1.2 |
| Total, Budget Authority | $348.7 | $410.5 | $61.8 |
| Total Staffing | $369.0 | $432.4 | $63.4 |
| Full Time Equivalents | 4,038 | 4,190 | 152 |
*Includes H-1B Fees and funds for the Alien Labor Certificationprogram.
The budget request for FY 2000 is for $432.4 million and 4,190 FTE, of which$410.5 million and 4,050 FTE is in the Salaries and Expenses account and $21.9million and 140 FTE is in the Fair share portion of the Special Benefitsaccount. This is an increase for staffing of $63.4 million and 152 FTE over FY1999. The request includes funds for the consolidation and restructure of theAlien Labor Certification program from ETA, additional resources to continuethe Administration's child labor initiative, the Administration's equal payinitiative, and improved financial management in the benefit programs.
Wage and Hour Standards
The FY 2000 budget request for the Wage and Hour Division is $181.4 millionand 1,626 FTE. The Wage and Hour Division is responsible for the administrationand enforcement of a wide range of laws which collectively cover virtually allprivate and state and local government employment. Wage and Hour Divisionactivities include obtaining compliance with the minimum wage, overtime, childlabor, and other employment standards under the Fair Labor Standards Act,Migrant and Seasonal Agricultural Worker Protection Act, certain provisions ofthe Immigration and Nationality Act, Employee Polygraph Protection Act, theImmigration Nursing Relief Act, the wage garnishment provisions of the ConsumerCredit Protection Act, and the Family and Medical Leave Act. Prevailing wagesare determined and employment standards enforced under various Governmentcontract wage standards. As part of the Department's plan to consolidate it'simmigration activities as recommended by the President's Commission onImmigration Reform (CIR) in September 1997, the FY 2000 request includes aproposal to transfer the Employment and Training Administration's (ETA) AlienLabor Certification (ALC) responsibilities to ESA's Wage Hour program. Thisproposal includes the transfer of $33.7 million and 98 FTE from ETA and alegislative proposal that would allow ESA to offset part of the costs with feespaid by employers who use foreign labor. In addition to the consolidation, theDepartment will launch a major restructuring of the ALC program designed tostreamline and create a fee-based, customer responsive program characterized bythe timely processing of employer applications. The long term goals for the ALCprogram are to improve customer service, eliminate the backlog and enhanceworker protections. The request for Wage Hour also includes $1.7 million tobegin the TECS (Technology for Excellent Customer Service) initiative, a newcomputer based telephone system that will allow the program to respond toapproximately 5 million calls from the public on compliance issues. The requestincludes $4.3 million and 30 FTE to build on the President's Child Laborinitiative begun in FY 1999 by increasing compliance efforts in targetedindustries including agriculture and garment manufacturing, and other low-wageindustries. This initiative will allow DOL to enhance efforts like"Operation Salad Bowl" and the "No Sweat" initiatives. Therequest also includes an additional $700 thousand, $1 million provided withinthe base, for the "Partnership with Service Providers" initiative,which will encourage voluntary compliance with Wage Hour laws throughpartnerships with organizations that provide services to workers and employerssuch as public schools and libraries, health care providers, and smallbusinesses. The request also includes $1 million as part of an ESA-wideinitiative to improve information technology capabilities.
Contractor EEO Enforcement
The FY 2000 budget request for OFCCP is $76.4 million and 827 FTE. TheOffice of Federal Contract Compliance Programs (OFCCP) enforces regulationswhich ensure equal employment opportunity for minorities, women, individualswith disabilities, and disabled and Vietnam Era and other veterans. Theserequirements govern the employment practices of Federal contractors andsubcontractors. They include Executive Order (EO) 11246, as amended; Section503 of the Rehabilitation Act of 1973, as amended; 38 USC 4212 and the VietnamEra Veterans' Readjustment Assistance Act of 1974; Title I of the Americanswith Disabilities Act of 1990; and provisions of the Immigration Reform andControl Act of 1986 and 29 CFR 30. Included in the FY 2000 request is $4.20million and 20 FTE for the Administration's Equal Pay initiative to provideemployers with the necessary tools to assess and improve their pay policies andto educate the public on the importance of this issue. In addition, thisinitiative will provide a focused effort on women in nontraditional jobs. Thisrequest also includes $2.7 million and 19 FTE to implement a ComplianceAssistance initiative with technical assistance via the Internet that addressesaffirmative action plans, industry best practices, and outreach and educationmaterials for the public. This request also includes $0.5 million fordeveloping performance measures and a baseline for measuring discrimination inour society This request also includes $0.8 million as part of an agency-wideinitiative to improve information technology capabilities.
Federal Programs for Workers' Compensation
The FY 2000 budget request for the Office of Workers' Compensation Programs(OWCP) is $110.5 million and 1,190 FTE in the Salaries and Expenses account and$21.9 million and 140 FTE in the Special Benefits account using Fair Sharefunds. OWCP administers three major disability compensation programs byproviding cash benefits, medical treatment, vocational rehabilitation, andother benefits to certain workers (or their dependents or survivors) who havework related injuries or disease. The FECA program provides income and medicalcost protection to civilian employees of the Federal government injured at workand to certain other designated groups. The Longshore and Harbor Workers'Compensation Act (LSHWCA) program provides similar protection to private sectorworkers in certain maritime and related employment, and the Black Lung Benefitsprogram provides protection to the Nation's coal miners suffering frompneumoconiosis. To continue the move towards a "paper less office",OWCP is requesting $6.3 million in Fair share funding for the FECA Case ImagingInitiative and staff training. OWCP is requesting for the Longshore program,$200 thousand to improve ADP services and support migration to a"paper-less office" processing environment, and $250 thousand as partof an agency-wide initiative to improve information technology capabilities.OWCP is also requesting $400 thousand for the Black Lung programs for theirData Exchange Initiative, which would allow OWCP to exchange data with the MineSafety and Health Administration (MSHA).
Office of Labor-Management Standards
The FY 2000 budget request for OLMS is $29.3 million and 288 FTE. The Officeof Labor-Management Standards (OLMS) enforces provisions of Federal law thatrequire reports from unions and others and establish certain standards forunion democracy and financial integrity. OLMS conducts criminal investigations(primarily embezzlement) and investigative audits of unions, conducts civilinvestigations (primarily concerning union officer elections); supervisesremedial union officer election reruns as required; administers statutoryreporting requirements and provides for public disclosure of filed reports. TheOLMS Division of Statutory Programs certifies protective arrangements fortransit employees when federal transit grants are used to acquire, improve, oroperate a transit system. This request includes $1.0 million, in addition tothe $1 million provided in 1997, to continue the development and implementationof an electronic filing system for reports required by the Labor-ManagementReporting and Disclosure Act (LMRDA) and for public disclosure via theInternet, a project begun in 1998. This request also includes $475 thousand toimplement a computerized program of union report audits to detect and correctdeficiencies in annual financial reports filed by labor organizations, and $300thousand as part of an agency-wide effort to improve information technologycapabilities.
Program Direction and Support
The FY 2000 budget request for Program Direction and Support (PDS) is $12.9million and 119 FTE. This activity supports ESA's operating programs andassures effective management by providing planning, personnel management,financial management, Federal/state liaison programs, management systemsimplementation, and data processing.
| FY 1999 | FY 2000 | Change | |
| Wage Hour Compliance Actions Completed | 53,000 | 53,900 | 900 |
| Fed. Contractor EEO Standards: Enforcement Compliance Reviews | 5,820 | 6,539 | 719 |
| Fed. Employees Compensation Act Cases received: | 165,000 | 165,000 | 0 |
| Longshore and Harbor Workers' Compensation Act: Lost-Time Cases Closed | 34,000 | 34,000 | 0 |
| Black Lung Benefits Act: Total Initial Findings | 5,500 | 7,500 | 2,000 |
| Labor-Management Standards: Investigations, Compl. Audits, Elections | 3,703 | 3,793 | 90 |
ESA INCOME MAINTENANCE PROGRAMS (MANDATORY)
(Dollars in Millions) | |||
| FY 1999 | FY 2000 | Change | |
| Special Benefits: | |||
| Federal Employees Compensation Act | $1,917.0 | $2,032.0 | $115.0 |
| Less Fair share funding | -20.3 | -21.9 | -1.6 |
| Longshore and Harbor Workers' Comp. | 4.0 | 4.0 | 0.0 |
| Subtotal, Special Benefits Program | 1,900.7 | 2,014.1 | 113.4 |
| Less Charge back Reimbursables | -1,825.7 | -1,901.1 | -75.4 |
| Net Carryover Balances | 104.0 | -34.0 | -138.0 |
| Total, Special Benefits | 179.0 | 79.0 | -100.0 |
| Black Lung Disability Trust Fund (BLDTF) | 1,021.0 | 1,014.0 | -7.0 |
| Less Offsetting Receipts | -2.0 | -2.0 | 0.0 |
| Less BLDTF Admin.. (Excludes Treasury) | -50.9 | -50.1 | 0.8 |
| Total, BLDTF | 968.1 | 961.9 | -6.2 |
| Other Income Maintenance Programs: | |||
| Panama Canal Commission Fund | 11.0 | 7.2 | -3.8 |
| Less PCC Offsetting Receipts | -11.0 | -7.2 | 3.8 |
| Special Workers' Compensation Expenses | 154.0 | 161.8 | 7.8 |
| Less Administrative Expenses | -1.9 | -1.7 | 0.2 |
| Total, Special Workers' | 152.1 | 160.1 | 8.0 |
| Total, Income Maintenance Programs | $1,299.2 | $1,201.0 | $-98.2 |
The budget requests a total of $1,201.0 million for income maintenanceprograms in ESA in FY 2000, a decrease of $98.2 million from FY 2000.
Special Benefits
The budget requests $79 million for Special Benefits in FY 2000. Thisincludes $75 million for Federal Employees' Compensation Act benefits, and $4million for Longshore and Harbor Workers' Compensation benefits. This accountalso includes a request for $21.9 million from Fair share funding to finance140 FTE, as described in the Staffing Section.
Federal Employees' Compensation Act Benefits
Funding is provided for long-term compensation benefits and certain medicalpayments for job-related injuries, diseases, or deaths of civilian employees ofthe Federal government and certain other designated groups. The Periodic RollManagement and Quality Case Management initiatives have contributedsignificantly to the reduction in overall FECA costs.
Longshore and Harbor Workers' Compensation Act Benefits
Funding is provided for one-half of the increased benefits provided by the1972 amendments for persons receiving compensation for permanent totaldisability or death which commenced or occurred prior to the amendments. Longterm compensation benefits and medical payments are provided for job-relatedinjuries, diseases, or deaths of private sector workers in certain maritime andrelated employment.
Black Lung Disability Trust Fund
The budget request provide funds from the Black Lung Disability Trust Fund(BLDTF) in FY 2000 for benefit and interest payments and administrativeexpenses. This includes $430.5 million for benefits, $50.5 million foradministrative expenses, and $533.0 million for interest payments.
Disabled Coal Miner Benefits
Under this program, all black lung compensation/medical and survivor benefitexpenses are provided when no responsible mine operator can be assignedliability for such benefits, or when coal mine employment ceased prior to 1970.
Administrative Expenses
This provides for all administrative costs incurred by the Department ofLabor in the operation of the Black Lung program, including reimbursements tothe Departments of Health and Human Services, and Treasury.
Interest on Advances
This appropriation also funds payment of interest on advances to the BLDTFfrom the general fund. In FY 2000, the amount of interest on advances isestimated to be $533.0 million.
Other Income Maintenance Programs
The budget requests $7.2 million for the Panama Canal Commission Fund and$161.8 million for the Special Workers' Compensation Expenses program.
Panama Canal Commission Fund
This provides for the accumulation of funds to meet the Panama CanalCommission's obligations to defray costs of workers' compensation which willaccrue pursuant to FECA.
Special Workers' Compensation Expenses Payments from the SpecialFund
Under the Longshore and Harbor Workers' Compensation Act, as amended, trustfunds in this program consist of amounts received from employers for the deathof an employee where no person is entitled to compensation for such death, forfines and penalty payments, and pursuant to an annual assessment of theindustry, for the general expenses of the funds. From these funds, certain longterm compensation benefits and medical payments are provided for job-relatedinjuries, diseases, or deaths of private sector workers in certain maritime andrelated employment.